Facing Employment Verification Issues Due to Blacklisted Past Employer – What Can I Do?

I have joined a reputed IT company 3 months ago. Recently, it has been brought to my attention that the current company I am working with has blacklisted my organization before the last one. Therefore, my employment with that organization is now in question. It is worth noting that I interviewed for my current position in September 2014 and received the offer letter in November 2014. During this period, I provided my employment documents multiple times, including proof of employment from the blacklisted organization. However, my current company did not inform me of any issues at that time.

Now, after 3 months of working here, I am being asked to verify my employment. I have submitted my bank statements, but they are deemed insufficient because I did not receive any salary for the first month. Nevertheless, I have all the necessary documents to verify this. The challenge lies in my current company's refusal to accept any documents from my previous employer due to their blacklisting.

I would like to understand what options are available to me in this situation. Additionally, could I potentially take legal action against my current employer for causing me mental distress?

"It has been brought to my knowledge that the current company I am working with has blacklisted my last-to-last organization. The company which has been blacklisted must have been on your CV/resume, and still, you have been selected. Now, ask your current organization what documentation they require for verification of service at the blacklisted company and ask them to provide a solution. What you bring from the blacklisted company is not acceptable, so what do they expect you to do? Put the ball in their court by giving them copies of your documentation related to the blacklisted company and let them clarify in writing/email."

Yes, you are absolutely correct. The BL company has been on my resume and the application form as well. Also, I appeared for the interview in my current organization in September 2014 and was issued the offer letter in November 2014. During this period, I had submitted all my proof of employment with this BL organization (Provisional appointment letter, Final Offer letter, Relieving letter, and Service certificate) around five times to different HR SPOCs. But no points were being raised.

Additionally, I was given an extension on my joining date to complete my notice period with my last organization. I am a bit worried about my position in the current company, and I wanted to know whether I am legally in a position to challenge the organization's perspective.

Regards